EU and Russia agree energy early-warning system

Brussels/Moscow - The European Union and Russia set up a new energy supply early-warning system on Monday in a bid to prevent the sort of crisis which has shaken their relationship in recent years. The system puts in place precise rules governing how each side should warn the other of impending supply interruptions and how the two parties should then react, to reduce the chances of an unexpected cut-off for technical or political reasons.

The issue has leapt up the EU's agenda since January, when a row between Russia and Ukraine led to natural-gas shortages in a number of EU member states.

"An energy crisis like the one the EU suffered in January is harmful for supply, transit and consuming countries alike. We need to do everything necessary to make sure that such a situation never happens again," said EU Energy Commissioner Andris Piebalgs, who signed the deal in Moscow alongside Russia's Energy Minister Sergei Shmatko.

The EU and Russia first set up an energy crisis warning system in 2007, nominating a top official from each side as the point of contact in any energy conflict. That decision followed a supply crisis sparked by a row between Russia and Ukraine in 2006.

Monday's agreement strengthened and formalized the system by defining exactly what counts as a supply crisis and setting out the precise steps each side should take in the event of problems.

It also extended the cooperation system to cover electricity and oil, as well as gas supplies.

The EU and Russia have been working on the text of the agreement since it was proposed by the European Commission, the EU's executive, in May.

On Wednesday, EU and Russian leaders are set to meet in Stockholm to discuss key aspects of their relationship, including energy supplies.

Russia is the EU's largest single fuel supplier, while the EU is Russia's largest customer, making each side keen to restore confidence after the January row.